Demand Forecasting Solution
The ultimate goal of any business is to turn first-time customers into returning customers. To achieve this goal, retailers must ensure that their products are always available to consumers. This can be done by implementing effective demand forecasting and replenishment software tools. Atriny is experienced in this area, and our demand forecasting software can help retailers meet their customers’ needs while reducing maintenance costs. We achieve this by accurately controlling inventory levels, increasing throughput, and streamlining operations.
Our software also includes built-in smart analytic tools that provide visibility at every stage of the supply chain, improving forecasting and replenishment. Our demand forecasting solution guarantees an optimal sales forecast for both permanent and promotional consumer products. By using our solution, retailers can significantly reduce operating and logistics costs while taking into account commercial and marketing restrictions in each store.
Primary objectives for using demand and sales forecasting tools
- Reduced investment into inventory (optimal inventory levels)
- Maximizing GMROII (Gross Margin Return on Inventory Investment)
- Optimizing COGS (reducing the purchase prices and transportation costs), optimal use of economies of scale in procurement
- Frequency/procurement schedule optimization
- Inventory optimization
- Minimizing storage space
- Increase inventory turnover
- Increase sales, and minimize markdowns.
- Investment (speculative) purchases
- Improving operations productivity (procurement)
- Desired goods
- In the right place
- In the right amount
- Decrease in expenses for routine operations, automation of routine operations
- Optimization of working hours of procurement specialists
- Optimization of storage space
- Load Alignment at Acceptance
3 BASIC ADVANTAGES
Create Customer
oriented forecasts
Demand forecasting is the King in retail FMCG: it manages every supply chain aspect and must be tackled carefully. Our retail demand forecasting solutions help retailers accurately predict demand across all channels by applying analytics to historical and real-time data creating reliable forecasts for managing the entire supply chain. All our tools are based on Customer-based inventory management and optimized service levels.
Automatic recharge management
Retail chains must ensure product availability while minimizing the time and cost of moving inventory across the supply chain. Our replenishment and warehouse solutions include pre-configured analytics that streamline and automate decision-making, support better replenishment strategies, and simplify direct orders for warehouses or suppliers that, in turn minimize errors, reduce costs, and speed up from time to time.
Stock distribution management, including store opening and reformatting
When managing stock distribution for single events, such as opening a store, launching promotions, or selling seasonal goods, retailers should have the right assortment in the right places. Our demand planning solutions centrally plan and control the assortment and distribution of goods during specific periods for certain trading events.
The advantages of using a forecasting solution are in the use of the necessary functionality (best practices in the industry):
- Demand Forecasting by pair "product/store”
- Base period management
- Management of the period of coverage
- Weekly forecast and daily distribution
- Seasonality management
- Management of relations between goods (New goods; Options; Replacement)
- Management of special weeks (Easter, New Year,...)
- Management of external factors (temperature, rates, market indicators)
- Considers the effect of promotions
- Direct and indirect influences (cannibalization, “halo”)
- Goods, Groups of goods
- ABC classification and service level management of goods
- Automatic correction of abnormal events and out-of-stock (filtering, smoothing)
- Automatic mass correctors of historical data and / or forecast (By site group and product group; By site)
- Manual adjustment of forecast calculation results and historical data
- Alerts generated for end users by the prediction engine
The functionality of the forecasting solution can be used in various architectures:
- Independently, as a stand-alone software, to predict the needs of stores. Prediction results can be uploaded to external systems for placing orders.
- Along with an automatic ordering system included in our toolkit. In this case, the solution automatically forms orders and transfers them from external systems to execution.
- As part of our product line, this solution provides the lowest integration costs and full functionality.
The main advantages of implementing the demand forecasting software solution:
- Demand forecasting accuracy with optimal use of available resources
- Decision-making efficiency: achieving a sufficient level of accuracy at the lowest cost and optimal use of resources is key in Retail
- A simple but effective process, no need for in-depth knowledge in statistics
- The solution automatically selects forecasting algorithms depending on the specifics of the historical data of goods: seasonality accounting; Slow movers, fast movers, sporadic or irregular
- Accounting for the effects of promos, special weeks (holidays), adjustment of lost sales
- The introduction of new goods, considering the effects of goods and product groups on each other
- Quantitative optimization
- Purpose-based replenishment at the level of service
- Decrease in deficit risks due to: Quality control of forecasting; Supplier Service Level Control
- Optimization of transport costs (Purchased logistics units, rounding, vehicle loading, price levels ...)
- Optimization of planning and frequency of procurement (the ability to calculate the optimal frequency)
Complete Integrated Solution
- An integrated solution that supports the complete procurement management process
- A single data model without the integration and implementation of multiple interfaces
- Synchronized forecasting processes, and replenishment of warehouses, optimizing the supply chain by customer demand
- The low total cost of ownership (TCO)
- Flexible licensing model
- Ease of use and training. The ability to easily manage complex forecasting and replenishment processes
- Speed and efficiency of solution deployment and management/support
We at Atriny Group have deep expertise in implementing demand forecasting solutions. We provide consulting that covers various retail operations. Our team will analyze your current business processes and provide impartial data on whether you have room for improvement.
If there is room for improvement, we suggest a solution from our toolbox. If there is nothing to improve, we leave you with all reports. Hence after our audit, you have information and independent third-party opinion based on clear KPIs.